×
You will be redirected back to your article in seconds

Council eyes film loan plan

Program designed to slow runaway biz

In an effort to keep low-budget film and TV shoots in Hollywood, the Los Angeles City Council agreed in principle Friday to set up a revolving loan program that would provide gap financing to projects costing $5 million or less.

By an almost-unanimous vote of 14-0 — councilman Nate Holden was absent — the board voted to set up a study group that would explore the idea.

“The departure of movie and television production from Los Angeles has impacted thousands of motion-picture industry workers who have been left out of work,” the council’s motion began. “Favorable exchange rates and a variety of government subsidies have created a compelling financial argument for producers to take their projects to Canada and elsewhere.”

Cody Cluff, president of the Entertainment Industry Development Corp., which helped draw up the new plan, called it a signal to the production community that Los Angeles is committed to keeping the industry where it belongs.

An EIDC study on production flight during the 1997-98 TV season indicated that more than half of the MOWs aired were produced outside the U.S., mostly in Canada.

Conceptually, the proposal would use the city’s favorable credit rating to help secure lower interest rates for small-budget productions based primarily in Los Angeles. Only projects with a distribution contract would be eligible — the contract would be used as collateral — and a completion bond would be required to ensure that the city incurs no financial risk.

Councilman Mike Hernandez, who chairs the City Council’s economic development committee, said the proposal is about jobs.

“As policymakers we can’t sit on our hands while our constituents are losing their jobs,” he said. “When a movie-of-the-week goes to Canada, everyone loses — our crews, vendors — everyone. This industry is worth $30 billion to this region. In economic development terms, in human terms, you can’t ignore what is happening around us. We all have a stake in this industry.”

Participants in the study group will include the city’s chief administrative officer, its legislative analyst and members of the mayor’s and city attorney’s offices. They will report to the council’s Community & Economic Development Committee within 60 days.

More Biz

  • Kirk Kerkorian

    Kirk Kerkorian's Estate Settles With Widow for $12.5 Million

    The estate of late media mogul Kirk Kerkorian has a reached a settlement with his widow, who claimed she was entitled to a third of his $1.8 billion fortune. Una Davis will receive just $12.5 million under the deal, which is set for court approval on Wednesday. Davis married the mogul in March 2014, becoming [...]

  • Meg Whitman and Jeffrey Katzenberg Strictly

    Variety's Innovate Summit 2018: What We Learned

    New insights into how data collection plays a role in the tech and entertainment spheres were revealed at Variety’s annual Innovate summit held in Los Angeles on Wednesday. Meg Whitman and Jeffrey Katzenberg discussed the exciting future of television designed for mobile phone viewing with their new streaming platform, “Quibi,” an executive from “The Ellen Show” discussed the [...]

  • Capitol Music Group Names Amber Grimes

    Capitol Music Group Names Amber Grimes Senior VP of Global Creative

    Amber Grimes has been named to the newly-created position of Senior Vice President of Global Creative for Capitol Music Group, it was announced today by Chairman & CEO Steve Barnett, to whom Grimes will report. According to the announcement, in her new position, Grimes will be integrally involved in formulating and executing the company’s global [...]

  • Kevin Hart

    Why Kevin Hart's Mea Culpa Was Too Little, Too Late (Opinion)

    Forgive me if this sounds trite or preachy, but the importance of owning up to our mistakes cannot be overstated. Denials, silence, cover-ups, repudiation — all are unacceptable. Media outlets around the globe, including ours, wrote about how Kevin Hart initially took no responsibility for having posted disgusting homophobic tweets years ago that resurfaced when [...]

  • Annie Lennox, Chrissie Hynde, Industry Execs

    Annie Lennox, Chrissie Hynde, Industry Execs Sign Anti-Brexit Letter

    Annie Lennox, Chrissie Hynde, Pink Floyd’s Nick Mason, Paloma Faith, Ed Sheeran manager Stuart Camp and Grammy/Emmy award-winning film composer David Arnold and several leading UK music industry bodies are among the signees of a letter drafted by the new organization Music4EU, stating that Brexit “represents a significant threat to the UK’s music industry” and [...]

  • Kevin Hart Oscars Gay Tweet Controversy

    What Public Figures Should Learn From the Kevin Hart Oscars Debacle (Guest Column)

    When social media erupted over Kevin Hart’s anti-gay tweets from years ago, many in the media and the entertainment industry believed he would immediately apologize, LGBTQ people would critique but ultimately accept his mea culpa, and the comedian would go on to host the Academy Awards. If offenders make a commitment to do better, their [...]

More From Our Brands

Access exclusive content